The British out-of-home (OOH) foodservice market is expected to grow by 1.6% in 2016, and a further 1.2% in 2017.
That's according to information company NPD Group, which revealed it had upped its growth forecasts for this year, after 1.3% growth in OOH foodservice visits in Britain in 2015 - the second consecutive year that the sector has recorded a rise in visits.
Total spend in the British OOH market was £52.2b for the year ending December 2015. That total is now expected to reach £53.5b in 2016, rising to £54.7b in 2017.
Its forecast for 2016 OOH visits is 11.4b, a 1.6% increase over the actual figure for 2015. For 2017, it sees 11.5b visits, a further increase of 1.2%.
Cyril Lavenant, NPD's director of foodservice for the UK, said: "It's good to see that there was a bigger improvement in 2015 than anticipated, with the actual performance of 1.3% visit growth against our prediction of 1.1%. We are now forecasting 1.6% visit growth for 2016 due to increasingly confident consumers and a potential further boost from the UEFA Euro Championship and the Rio 2016 Olympic Games.
"However, while 2017 will also see growth, it is likely that the pace will slow down. We do not see consumers increasing their spending in the foodservice sector any faster than this."
NPD said that casual dining growth was strong but that it would take another year before it broke through the £5b mark. Last year it was predicted that this would happen by the end of 2016 but it is now expected to grow 5% to £4.9b in 2016, and a further 4.5% in 2017 to reach £5.1b.
The company said the slower rate of growth was due to casual dining having reached saturation point in the London market.
Meanwhile, visits in the quick-service burger category are expected to reach 1.05b in 2016, with spend of £4.4b, increasing to 1.09b visits and spend of £4.6b in 2017.
Quick-service coffee visits in 2016 will reach 656 million with spend of £2.3b, rising to 673 million visits in 2017 and spend of £2.4b.
Latest video from The Caterer